In a competitive industry
A)firms produce a product or service with very close substitutes
B)the firms products have a very elastic demand
C)the firms have many rivals
D)all of the above

Question

​In a competitive industry
A)​firms produce a product or service with very close substitutes
B)the firms products have a very elastic demand
C)the firms have many rivals
D)​all of the above

Quizplus · Accepted Answer

In a competitive industry, all three factors hold true: firms are producing products or services with close substitutes, their products have a very elastic demand, and there are typically many rivals in the market. This creates intense competition and puts pressure on firms to maintain quality and pricing in order to attract customers.

​In a Competitive Industry

In a Competitive Industry